Annual report pursuant to Section 13 and 15(d)

Leases

v3.21.1
Leases
12 Months Ended
Dec. 31, 2020
Lessee Disclosure [Abstract]  
Leases

Note 18. Leases

The Company leases its principal executive offices in Newark, California, under a non-cancelable operating lease which expires in October 2021. This lease does not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the lease does not contain contingent rent provisions or renewal options. Our lease includes both lease (e.g., fixed monthly rent payments) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components for all leases. Upon adoption of ASC 842 on January 1, 2019, the Company recognized an operating lease right-of-use asset of $0.9 million and a corresponding lease lability of $0.9 million, using a discount rate of 6% which reflects the Company’s incremental borrowing rate for a similar asset and similar term as of the date of adoption.

In April 2020, the Company executed a lease agreement for office space in Washington, DC, under a non-cancelable operating lease that expires in November 2025. This lease does not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the lease does not contain contingent rent provisions. The lease contains an option to extend the term for an additional five years subject to certain terms and conditions. This lease includes both lease components (e.g., fixed payments including rent, taxes, parking, and insurance costs) and non-lease components (e.g., common-area or other maintenance costs), which are accounted for as a single lease component as the Company has elected the practical expedient to group lease and non-lease components for all leases. Upon lease commencement on May 1, 2020, the Company recognized an operating lease right-of-use asset of $0.5 million and a corresponding lease liability of $0.5 million, using a discount rate of 3.85%, which reflects the Company’s incremental borrowing rate for a similar asset and similar term as of the date of commencement.

In November 2020, as part of the LEEDS acquisition, the Company acquired the non-cancelable operating lease of LEEDS’ office in Newark, New Jersey, which expires in July 2022. This lease does not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the lease does not contain contingent rent provisions or renewal options. This lease includes both lease (e.g., fixed monthly rent payments) and non-lease components (e.g., common-area or other maintenance costs) which are accounted for as a single lease component as the Company has elected the practical expedient to group lease and non-lease components for all leases. In measuring the lease liability upon acquisition, the Company used a discount rate of 5% which reflects the Company’s incremental borrowing rate for a similar asset and similar term as of the date of acquisition.

The operating lease cost recognized for the year ended December 31, 2020 and 2019, was $0.4 million and $0.3 million, respectively. Rent expense recognized for the year ended December 31, 2018 was $0.6 million.

Supplemental information related to the operating leases as follows (in thousands):

 

 

 

As of December 31,

2020

 

Assets

 

 

 

 

Operating lease right-of-use assets

 

$

882

 

 

 

 

 

 

Liabilities

 

 

 

 

Lease liabilities (short-term) (presented within Accrued expenses and other

   current liabilities)

 

$

484

 

Lease liabilities (long-term) (presented within Other liabilities)

 

 

461

 

Total operating lease liabilities

 

$

945

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended

December 31,

2020

 

Cash paid for amounts included in the measurement of lease liabilities

   (presented within Operating cash flows)

 

$

386

 

 

 

Maturities of the lease liabilities at December 31, 2020 are as follows (in thousands):

 

2021

 

$

511

 

2022

 

 

187

 

2023

 

 

102

 

2024

 

 

105

 

2025

 

 

98

 

Total lease payments, undiscounted

 

 

1,003

 

Less: imputed interest

 

 

(58

)

Total

 

$

945